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Here’s a list of 10 common demand planning metrics. 1. Early Warning Indicators for Demand Variation Demand variation in the tune of +/- 15% at an SKU and Product Category level, need to be monitored and reported on a weekly basis to concerned stakeholders.What are the three forecast accuracy metrics?
There is probably an infinite number of forecast accuracy metrics, but most of them are variations of the following three: forecast bias, mean average deviation (MAD), and mean average percentage error (MAPE). We will have a closer look at these next. Do not let the simple appearance of these metrics fool you.How accurate should a demand planner be?
Tip: Demand Planners should target to provide a reasonable Forecast within +/- 5% accuracy. 7. Actual Sales Conversions vs. Sales Assumptions Marketing teams carry out Merchandise activities throughout the year.Are your demand forecasts accurate?
Forecasts are never perfect but are valuable in better preparedness for the actual demand. Accurate and timely demand plans are a vital component of an effective Value Chain. Inaccurate demand forecasts typically would result in supply imbalances.